The Australian dollar fluctuated in a tight range slipping towards the Asian session to see its third session rebound since May 8 against the US dollar following the economic developments and data followed by the Australian economy and on the eve of developments and economic data expected Tuesday by the US economy The world's largest economy.
At 0231 GMT, the AUDUSD dropped 0.06% to 0.6957, compared with the opening levels of 0.6961, after reaching a low of 0.6953, while recording a high of 0.6967.
On the Australian economy, the Australian National Bank of Business Confidence Index showed a wide spread to 7 versus zero in April, while the National Bank of Australia's confidence in the current situation narrowed to 1 Compared to $ 3 in April.
This comes just hours before Assistant Governor of the Reserve Bank of Australia for Financial Markets, Christopher Kent, gave brief remarks at the Australian Renminbi Forum in Melbourne, and the Assistant Governor of the Reserve Bank of Australia to the Economy, Lucy Ellis, delivered a speech entitled "Watching the Invisible Things" at the Free Bern Policy Lecture In Melbourne.
On the other hand, investors are looking for the US economy to release the Producer Price Index (PPI), a preliminary index of inflationary pressures that could reflect a slower growth rate of 0.1% versus 0.2% in April. 1.9% versus 2.2% in the previous annual reading for April.
In the same context, the core reading of the PPI may accelerate the pace of growth to 0.2% from 0.1% in April, while the core annualized reading of the same index may show a slowdown in growth to 2.3% from 2.4% in the previous April reading , And comes hours before the disclosure of inflation data for the last month with the release of the Consumer Price Index on Wednesday.
AUDUSD is beginning to test support for the bullish intraday channel, which is forming a bearish continuation pattern. We expect the pair to continue its bearish momentum in the coming sessions, supported by the negative pressure formed by SMA 50.
From here, we believe that opportunities are available to trade negatively over intraday and short term basis, noting that our next target is at 0.6860, while stability below 0.7044 and 0.7070 is required.
The trading range for today is expected among the support at 0.6900 and the resistance at 0.7000.
The general trend for today is bearish.